Gold weekly outlook 7 to 11 April 2014
Gold daily chart technical analysis
MCX GOLD on last trading session closed at 28,443 with loss. On daily chart, gold future price trend and momentum both are bearish. Gold is trading below major short term averages with bearish divergences on indicators.
For next week, gold support zones are 28k, which is previous swing low, and below it, 27,600 will be next support zone. While on upside 29,100 is 1 month average and first resistance. Above it 29,500 is 3-month average and major resistance from short-term view.
On indicators and oscillators, RSI is 38 and off the low while, CCI is -125 and off the low.
In next week, expect gold future to recover on weak rupee and some value buying. Therefore, with stop loss below 28k traders can use correction to accumulate and expect technical bounce back up to 29,100 and then 29,500.
Gold weekly chart technical analysis
MCX GOLD this week closed flat. This was 3rd losing week for gold and in these 3 weeks tumbled from 31k to 28k. This week gold future hit high at 28,790 while low was at 27,861. Total 900 rupee or 3% weekly swing and closed flat.
On weekly chart, gold is below major averages with bearish indicators patterns.
From medium to long-term view, 28,600 is 2 years average and first major resistance on upside. Above it 29,500 is 6, 12-month average, and next major resistance. On downside, 27k and 25,800 are major supports of previous swing bottoms.
On indicators and oscillators, RSI is 47 and with bearish divergence and CCI is -70 and heading towards -200 with bearish divergence.
Investors below 29,500 stay short or stay away and expect downside targets for gold in long terms.